APEC Technical Assistance and Training Facility

Annual Report, October 2008–September 2009

October 2009

This publication was produced by Nathan Associates Inc. for review by the United States

Agency for International Development.

APEC Technical Assistance and Training Facility

Annual Report, October 2008–September 2009

DISCLAIMER

This document is made possible by the support of the American people through the United States Agency for

International Development (USAID). Its contents are the sole responsibility of the author or authors and do not

necessarily reflect the views of USAID or the United States government.

Contents

Introduction 1

1. Facility Operations 3

Mobilizing Team and Establishing Office 3

Implementation Challenges 4

Key Visits 5

2. TATF Work Plans 7

Work Planning Process 7

Implementation of TATF Activities 7

3. Work for the Secretariat 9

IT Activity Stream 9

Project Management Unit Support Activity Stream 11

Linkages Between APEC Secretariat and Member Economies Activity Stream 13

APEC Institutional Support Activity Stream 14

4. Work on Three APEC Pillars 17

Trade and Investment Liberalization 17

Business Facilitation 19

Economic and Technical Cooperation 22

Capacity Building and Technical Assistance to APEC Developing Member

Economies 26

5. Performance Monitoring Plan 27

Appendix A. Activity Status Matrix

Appendix B. Indicator Targets and Results

Appendix C. Short-term Consultancies

Illustrations Table 1-1. Key Visits 5

Table 4-1. Delivered Work Aimed at APEC’s Three Pillars as of October 22, 2009 17

Introduction

The APEC Technical Assistance and Training Facility (TATF) is a four-and-a-half-year

project managed by USAID Regional Development Mission/Asia (USAID/RDM/A) with

funding and strategic direction provided by the U.S. State Department Bureau of East Asian

and Pacific Affairs, Office of Economic Policy (EAP/EP). APEC TATF began operation in

October 2008 and has a projected end date of March 1, 2013. The project office is housed in

the APEC Secretariat in Singapore.

The purpose of the project is to help the APEC Secretariat become a more strategically

managed regional institution so it can achieve APEC’s policy objectives more effectively and

efficiently. TATF also provides capacity-building assistance to APEC member economies to

help them achieve APEC’s strategic goal of regional economic integration and meet the

Bogor Goals of free and open trade and investment in the Asia-Pacific region.1 Capacity-

building assistance is attuned to APEC’s Three Pillars: (1) trade and investment liberalization

(2) business facilitation, and (3) economic and technical cooperation.

This first annual report covers the activities of APEC TATF from its first two work plans

approved through the first 12 months of operation, October 2008–September 2009. During

that period, the Facility accomplished a number of tasks. Highlights include

• Submission of and/or contribution to seven APEC project proposals;

• Training for Secretariat staff on improving project quality;

• Assessment and recommendations on the Secretariat’s IT systems;

• Recommendations on an APEC performance feedback system for seconded staff and

recommendations on how to improve the performance appraisal form for APEC support

staff;

• Procurement and installation of a digital video conferencing (DVC) unit;

• Examination and recommendation on APEC’s monitoring and post-project evaluation

process;

• Development of APEC Traveler Frequently Asked Questions (FAQs);

• Support for stronger links between the APEC and ASEAN Secretariats, including travel

by a delegation of six APEC Secretariat staff to accompany Executive Director Tay to

ASEAN;

• Study exploring development of an APEC Focal Points program to enhance links between

the APEC Secretariat and member economies;

1 Developed economies have until 2010 to reach the Bogor Goals; developing economies have until 2020.

2 A P E C T A T F A N N U A L R E P O R T , 2 0 0 8 – 2 0 0 9

• Initiation of study on strengthening links between the APEC and APEC Business

Advisory Council (ABAC) Secretariats and steps APEC can take to build and engage

with a broader constituency;

• Development of a mock-up database website of an APEC Environmental Goods and

Services Information Exchange tool;

• Implementation of two workshops related to cross-border services trade;

• Completion of four case studies (Indonesia, Mexico, United States, Vietnam) on public

consultation in the rule-making process;

• Implementation of a workshop to promote micro-credit for women entrepreneurs; and

• Assistance to Vietnam for a corporate governance training program.

For the reporting period, this report describes facility operations (section 1), facility work

plans (section 2), work done for the APEC Secretariat (section 3), and work done in the three

pillars (section 4). A summary of activity status is presented in Appendix A, of indicator

targets and results in Appendix B, and of short-term consultancies in Appendix C.

1. Facility Operations

The APEC Technical Assistance and Training Facility (TATF) was established via a Task

Order (Contract Number EEM-I-00-07-00009-00, Task Order 03), signed in September 2008,

between the U.S. Agency for International Development and the implementing contractor,

Nathan Associates Inc. During the first year of operation, October 1, 2008–September 30,

2009, APEC TATF completed a number of activities identified in its first two work plans.

APEC TATF implementation began with start-up activities that included mobilization of

resident staff to Singapore, office set-up, and consultations with APEC and U.S. Government

stakeholders. This section summarizes APEC TATF start-up tasks.

MOBILIZING TEAM AND ESTABLISHING OFFICE The Chief of Party (COP) and the Deputy COP (DCOP) arrived in Singapore by the first

week of December 2008, followed by the Project Management Specialist, who arrived in mid-

February 2009. With assistance from the APEC Secretariat, resident staff obtained visas for

themselves and their dependents. Simultaneously, APEC TATF signed a memorandum of

understanding securing office space on the sixth floor of the APEC Secretariat, as well as

related access to printers and the Internet, issuance of APEC e-mail accounts, and

procurement of office furniture and supplies.

Nathan Associates Inc., the implementing contractor, has encountered delays in formally

registering in Singapore and as a result has not yet opened a local bank account. The main

reason for the delay is that the Government of Singapore has sought assurance that any

monies transferred by Nathan Associates into Singapore will be U.S. foreign assistance funds

entitled to tax-exempt treatment. APEC TATF has proposed a procedure whereby all funds

transfers will be made under cover of a letter from USAID that states the amount of funds

being transferred and certifying that these are in fact U.S. foreign assistance funds entitled to

tax-exempt treatment. Singapore’s Ministry of Finance and Ministry of Foreign Affairs are

reviewing this proposal and in late September reportedly sought an opinion on the matter

from the Attorney General’s Chambers.

According to APEC Secretariat contacts, the delay is the result not of any specific concern

that APEC TATF or Nathan Associates will seek to circumvent Singapore’s tax requirements

but of a general concern regarding precedent. Singapore’s bureaucracy has never encountered

a similar situation and wishes to reach a conclusion solidly grounded in domestic law and

statutes. This lack of resolution regarding registration and tax-exempt issues has created some

challenges, particularly in making payments for local per diems and procurements, but has not

impeded APEC TATF’s core work program.

As TATF activities progressed throughout the first year, it became apparent that the level of

staffing would be inadequate for the increased tempo of implementation planned for the

fourth quarter of 2009 and beyond. Therefore, on September 24, TATF formally requested,

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and on September 28 received approval for, the addition of one resident substantive staff

member. The addition of this staff member will allow the TATF to meet demand for

additional programs aimed at the Secretariat and projects to advance APEC’s policy goals.

The new staff member will be responsible for managing the APEC project approval process,

logistical arrangements for training events, and other APEC TATF implementation activities

as needed.

In its request, the TATF analyzed options for adding staff, ranging from the hiring a junior

local employee to deploying an employee from Nathan Associates’ home office. The request

explained that while deploying a Nathan staff member would be the most expensive option it

would also offer the best “value for money.” The RDMA then approved mobilization of

Nathan staff member Nimesh Modak as Trade Specialist and Training Coordinator. Mr.

Modak, who will join the resident team on December 1, 2009, for a period of one year, has

been working on APEC TATF since it inception and is familiar with the full range of

requirements and procedures to which TATF activities are subject, including the policies and

procedures of USAID, the U.S. State Department, APEC, and Nathan Associates. He is thus

uniquely qualified to contribute to TATF output from day one. Because “value for money”

calculations are dynamic, TATF specifically requested approval for a one-year only

deployment. During this period TATF will evaluate how to best meet needs for staffing and

may consider hiring a lower-cost local employee who Mr. Modak could train during a period

of overlapping tenures.

IMPLEMENTATION CHALLENGES During its first year of operation APEC TATF gained experience in preparing project

proposals seeking APEC co-funding and in managing processes associated with these

proposals. However, neither the U.S. Government nor APEC TATF has final control over the

outcome of APEC’s co-funding process.

To date, APEC TATF has prepared and submitted seven project proposals, six of which have

been approved for co-funding. The APEC project proposal for an APEC workshop on public

consultation in the rulemaking process was submitted twice, and was approved after the

second submission. The seventh project proposal, which did not receive funding, has not yet

been submitted for a second review. This limited data set suggests a 71 percent success rate

for first submissions and a 100 percent success rate if second submissions are included. APEC

TATF believes that this makes for a solid record in securing co-funding in its first year of

operation. TATF wishes to note, however, that the APEC co-funding process and the related

U.S. Government interagency process are very time-consuming for its small number of staff

and impose time constraints on the speed with which we can implement our programmatic

work. Moreover, while TATF’s record of securing co-funding is so far positive, any failure to

secure co-funding or to identify alternative co-funding (necessary due to limits on how TATF

can fund programs), could pose a great challenge to TATF’s ability to deliver results.

F A C I L I T Y O P E R A T I O N S 5

KEY VISITS Table 1-1 summarizes key visits during first year of APEC TATF operations.

Table 1-1

Key Visits

Name(s) Purpose of Visit Date

David Katz, Teri Lojewski, Victoria

Waite, Skip Kissinger, and Chanyut

Nitikitpaiboon

Singapore: Attend BMC meeting; meet with APEC Secretariat staff to

discuss project and develop ideas for first work plan activities.

October

2008

Skip Kissinger and Michael Satin Singapore: Introduce Michael (replacing Skip as CTO) to key staff at

APEC Secretariat.

December

2008

David Katz and Victoria Waite Bangkok: Post-award briefing with RDMA, including contracts, GDO

and the regional legal adviser.

January

2009

Jennifer Wilson Singapore: Tasked by RDMA to provide the day-to-day support to

APEC TATF; met key APEC Secretariat staff and U.S. Embassy

officials.

January

2009

Michael Satin and Jennifer Wilson Singapore: Attend BMC I meeting; met with EAP/EP and APEC

TATF team to discuss project implementation and potential ideas for

second work plan.

February

2009

Michael Farbman Singapore: Consultations at APEC Secretariat on how APEC

functions, identification of key development needs and how TATF can

assist.

April 2009

Kathy Hadda and Michele Dastin Singapore: On margins of CTI met for consultations on work plan

implementation issues.

May 2009

David Katz and Victoria Waite Bangkok: Meetings with RDMA to discuss project implementation,

opportunities to leverage work being undertaken in ASEAN.

June 2009

David Katz Hanoi: Meetings with RDMA on margins of Vietnam workshop on

corporate governance to update on work plan implementation

July 2009

Kurt Tong, Jim Steele, Michele

Dastin, Michael Satin, Michael

Farbman

Singapore: Met on margins of MRT/SOM/BMC to discuss work plan

implementation and planning for future work plans and TATF

administration issues, including staffing.

July/Aug

2009

Michele Dastin Singapore: BMC meeting took place on October 2, just after this

progress report period. TATF during September prepared numerous

documents on key work plan activities for discussion during BMC and

with State EAP/EP.

September

2009

2. TATF Work Plans

WORK PLANNING PROCESS The activities proposed in the first and second work plans reflect consultations with a broad

range of stakeholders, particularly USAID and the State Department. The COP and DCOP

have also consulted officials at the APEC Secretariat to better understand APEC policy

priorities as well as policies, procedures, and institutional arrangements that have implications

for TATF project implementation. In addition, other donor agencies implementing projects

for APEC were consulted to ensure complementarities in each other’s activities. These

extensive consultations during each work planning cycle have provided APEC TATF with a

basis for work programs to begin to meet the core objectives of the APEC TATF as

articulated in its task order.

By the time of the second work plan development period, some activities of the first work

plan had not been completed because of delays during project start-up as APEC TATF

familiarized itself with U.S. Government interagency coordination and the APEC project

proposal cycle. Work tempo then increased strongly in the second half of the year as TATF

implemented activities identified in both the first and the second work plans.

Both plans identified activities in three broad areas—work to support the APEC Secretariat,

work to advance policy objectives in APEC’s three pillars, and other work required by the

APEC TATF Task Order. The second work plan channeled activities for supporting the

Secretariat activities into four streams: an IT Activity Stream, a PMU Support Activity

Stream, a Linkages between APEC Secretariat and Member Economy Activity Stream, and an

APEC Institutional Support Activity Stream. This report follows the latter approach in

classifying all APEC TATF activities to date.

IMPLEMENTATION OF TATF ACTIVITIES TATF closely coordinates with, consults with, and seeks approval from USAID and the U.S.

State Department before undertaking technical assistance and training. After RDMA

approved each work plan and before plan implementation, TATF consulted with the

Executive Director Ambassador Michael Tay and other APEC Secretariat staff to seek their

guidance on acquiring formal APEC approval for activities identified in the plan. These

consultations guided much of the prioritization of APEC TATF’s activities and its

management of the APEC project approval process. Throughout implementation, TATF

continued to liaise closely as appropriate with relevant APEC member economy officials and

APEC Secretariat officials to notify them of upcoming work and progress to date and to seek

their concurrence on TATF activities. Similarly, BMC was consulted as appropriate for

guidance on the fiscal or management impact of the TATF’s work.

3. Work for the Secretariat

The APEC TATF aims to help make the APEC Secretariat more effective, efficient, and

sustainable by strengthening the capacity of its professional staff, enriching its outreach

activities, improving its operations, and broadening its cooperation with regional

organizations. Accordingly, APEC TATF’s first two work plans identified activities to

strengthen the Secretariat and to address needs expressed by stakeholders, including senior

officials in the Secretariat. Work has focused on improving the Secretariat’s internal IT

systems, improving the efficiency and effectiveness of the PMU in its support to APEC

member economies, making the Secretariat more accessible to member economies, enhancing

the quality of interactions between the Secretariat and member economies, and providing

institutional strengthening support to facilitate continuity and improve structures and

processes in the Secretariat.

This section provides an overview of progress made by the APEC TATF in its first year of

operation to address the capacity building and technical assistance needs of the APEC

Secretariat through activities identified in the first and the second work plans.

IT ACTIVITY STREAM

IT Assessment Demands on the APEC Secretariat, in particular large increases in the number of labor-

intensive requests for APEC co-funding of projects, have begun to strain the capacity of

Secretariat IT systems and resulting inefficiencies are burdening APEC Secretariat staff. In

light of earlier IT audits by IBM and by AusAID through the Effectiveness Grant, the APEC

Secretariat asked the APEC TATF to review and help rationalize three critical IT systems: the

APEC website, accounting program, and the project database (PDB). The Secretariat

requested that the review recommend specific, actionable steps to optimize these systems and

make them as interoperable as possible. This activity was included in the first and second

APEC TATF work plans.

Delivered. APEC TATF conducted an IT assessment of the three systems during a September

fact-finding visit by Mr. Fulvio Carbonaro, an IT expert. Mr. Carbonaro consulted with a

broad range of APEC Secretariat senior officials and staff, including Executive Director Tay,

the IT team, the communications office, the finance unit, the project management unit, and

others. The general approach and recommendations were discussed with Secretariat staff at

the conclusion of Mr. Carbonaro’s visit, and a summary report with core recommendations on

upgrades needed for efficiency and interoperability, including an implementation plan and

cost estimates, was submitted to the APEC Secretariat in September for review as information

during the Budget and Management Committee meetings scheduled for October 2-3 in

Singapore. In sum, the report recommended a common platform for APEC IT systems, likely

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Microsoft SharePoint, now used by some Secretariat systems, or an equivalent platform. It

also recommended upgrading to the latest version of the accounting software Accpac;

migrating the PDB to Microsoft SharePoint 2007 and customizing it to include structured

data; migrating the APEC website to Microsoft SharePoint 2007; and developing a business

intelligence system to allow for better and more automated report generation.

Next Steps. The APEC TATF will review, edit, and format the full draft IT assessment and

provide a copy to RDMA and State EAP/EP for review. Once TATF, RDMA, and State

agree, TATF will provide a final version to the APEC Secretariat and other member

economies as appropriate for review with a view to obtaining consensus on the report’s core

recommendations.

Project Database APEC TATF staff met numerous times during the first and second work plan periods with

members of the APEC Secretariat IT staff and project management unit to discuss the PDB.

The intent of these meetings was to learn what database work was underway or planned in

order to determine how the TATF could assist with that work. The PDB is a critical system

for APEC as it is the means by which member economies submit project proposals for

consideration for APEC co-funding. Secretariat staff use the PDB to assess projects for co-

funding and to track implementation. The system, however, is composed primarily of

nonstructured data (e.g., text), which limits search functions and the ability to produce reports.

The APEC TATF staff reviewed the final report and recommendations of an IBM audit of the

PDB conducted in April and the findings of the AusAID Effectiveness Grant consultants.

Next Steps. In September, APEC TATF launched its own IT assessment, which included the

PDB and reached conclusions on next steps as stated above.

Online Communications Strategy The Internet has become a very important channel through which organizations explore and

conduct their work. APEC, however, has lagged in investment in its online infrastructure and

capability. APEC’s Communications office has developed an “APEC Online Strategy” that

includes all online services provided by APEC, such as the online collaboration tool, resource

databases, and online meeting systems. The strategy aims to meet the expectations of APEC

Internet users, to empower APEC internal stakeholders, and to make the best use of funds

allotted to online services. The strategy, however, remains largely unfunded. A key element

of the strategy is to update the APEC website platform, which currently uses the Day

Software Communiqué Content Management System.

Next Steps. Review the IT assessment recommendations and make a decision regarding its

recommendation to migrate the website to the Microsoft SharePoint, or other common

Secretariat software platform.

APEC Secretariat Development of DVC Capability APEC TATF staff consulted extensively with APEC Secretariat staff to understand how the

Secretariat views the utility of digital video conferencing (DVC) for APEC operations, and to

understand views of the World Bank’s Global Development Learning Network (GDLN)

system. The TATF also met multiple times with World Bank staff to ensure that it fully

understood the terms on offer related to participation in GDLN. The TATF completed a

W O R K F O R T H E S E C R E T A R I A T 1 1

memorandum per the terms of its first work plan on the GDLN (including costs associated

with it) and DVC capability for review by APEC Secretariat senior officials. The TATF

presented a memo for APEC Secretariat leadership examining possible participation in the

GDLN and the merits of having a DVC capability at the Secretariat.

Delivered. APEC TATF sought approval from RDMA and quotes from vendors for DVC

equipment, including training on equipment use. TATF identified a local vendor, Spectrum,

through a best value selection process. The DVC unit was installed in the third-floor

conference room of the APEC Secretariat in August. The DVC unit is a Polycom HDX-9004

dual-screen system mounted on a mobile cart. Through it, the APEC Secretariat can connect

with up to seven remote sites at one time. This installation concluded a multi-year process

during which the APEC Secretariat considered the merits of video conferencing and of

affiliating with the GDLN. The TATF provided training to the Secretariat staff on the usage,

functions, and capabilities of the DVC unit.

The TATF also coordinated with Phil Karp, World Bank Regional Manager for East Asia and

Pacific, to have the APEC Secretariat join a GDLN program on September 25. The program

was hosted by the Shanghai GDLN center and focused on the topic of sub-national debt in

Asia. About eight APEC staff attended. Since then the World Bank has placed the APEC

Secretariat on its GDLN affiliate email list and the Secretariat is regularly invited to

participate in GDLN programs. Having the ability to participate in these programs fulfills a

key objective of installing the DVC system in August 2009.

Next Steps. Continued monitoring the use of the DVC equipment and encouraging APEC

Secretariat staff to consider integrating DVC meetings into their work. Liaise with World

Bank GDLN staff on a periodic basis on connecting to GDLN programs that may be of

interest to Secretariat staff.

PROJECT MANAGEMENT UNIT SUPPORT ACTIVITY STREAM

APEC Secretariat PMU Systems and Procedures

In early March, an AusAID-led consultancy team spent 10 days at the APEC Secretariat

fulfilling the terms of reference related to decision-making arrangements for project

devolution, delegation, and risk management. The consultants were to address travel-related

issues generally. They examined the issues in depth, and made recommendations to help

address problems that Project Directors (PDs) and Project Executives (PEs) encounter with

regard to travel and APEC projects. An APEC Traveler Frequently Asked Questions (FAQs)

piece was then developed to reduce the number of queries channeled to PDs and PEs. While

the AusAID consultants addressed issues related to travel, the consultancy had little impact on

guidelines that set forth APEC conditions and eligibility for member economies and expert

speakers.

Delivered. APEC TATF delivered written responses to FAQs for APEC-funded participants,

APEC-funded experts/speakers, and project overseers after consulting with staff in the

Secretariat, including members of the Project Management Unit (PMU). The TATF delivered

three sets of draft FAQs to the PMU on April 28 and submitted final versions to the

Secretariat in August.

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Next Steps. Monitor use of the FAQs and any changes to APEC travel guidelines and

procedures, adjusting the FAQs as needed.

Digitalizing the APEC Project Guidebook and Project Proposal Form Member economies have criticized the APEC Project Guidebook for being too complex. The

guidebook provides instructions and guidance on how to design and submit program

proposals for quality ranking and funding approval through the APEC process. AusAID, as

part of its Effectiveness Grant, has indicated that it will fund a rewrite of the hardcopy

guidebook. The rewrite will most likely entail reorganization, updates not yet in the latest

edition, and professional editing. AusAID Effectiveness Grant consultants also indicated in

March 2009 that the guidebook would be more effective if it were hyper-linked to a digital

version of the APEC Project Proposal forms, thereby integrating the guidebook into the

process, although it would not have the resources to complete an electronically integrated

guidebook and APEC project proposal process. APEC PMU chief (and AusAID staff) Evelyn

Loh told TATF in September that the rewrite was ongoing, but should be completed in the

coming weeks, after which it will be ready for digitalization.

Next Steps. The TATF will coordinate closely with PMU and AusAID, and following BMC

endorsement of AusAID recommendations with respect to the APEC project guidebook, the

TATF will examine the cost, feasibility, and utility of developing a digital version of the

guidebook that could be hyperlinked to an online APEC project proposal template and present

a strategy for implementing electronic versions. Once there is agreement by TATF

stakeholders, the TATF will take the lead in building digital project proposal templates and a

revised APEC guidebook.

Build Capacity to Improve Proposals from Developing APEC Member Economies

Deliverables for this activity included (1) a gap analysis of the Secretariat’s capacity to

provide guidance on developing high-quality project proposals, especially to developing

member economies; and (2) a training program to build the Secretariat’s capacity to identify,

improve when necessary, and obtain funding for developing member economy project

proposals that address APEC policy priorities. After consulting with members of the PMU,

the TATF drafted a note on proposed PMU training in order to clarify challenges in advising

on project quality and to ensure that proposed training was aligned with the work areas of the

AusAID consultancies. The note was circulated to the PDs responsible for the Operational

Account (OA), Trade, Investment and Liberalization Fund (TILF) and the APEC Support

Fund (ASF) to ensure that ideas on training reflected the needs of the PDs as a whole.

Delivered. The note was turned into technical instructions used to contract short-term

technical assistance expert, Lief Doerring, to design and conduct the training program. The

APEC TATF held a workshop on August 13 and 14 for about 20 APEC Secretariat staff,

including all members of the PMU and other PDs and PEs. The workshop used actual project

proposals to illustrate how to apply the OECD principles for quality and to provide clear,

actionable feedback to project proponents. Afterwards, APEC TATF distributed memory aids

to reinforce training lessons and to guide APEC Secretariat staff unable to attend the

workshop. The training was well received and Secretariat staff have requested additional

work in this area (see below).

W O R K F O R T H E S E C R E T A R I A T 1 3

Next Steps. As a follow-up to the workshop activity, APEC TATF is revising the project

proposal form to align more closely with the structure and text of OECD DAC criteria on

quality, which was the basis of the training program. APEC TATF is also reviewing APEC

internal guidance on quality criteria as they relate to the project proposal form in order to

adjust that guidance to OECD DAC criteria.

Examine Post-project Evaluation Process The TATF proposed to assess APEC’s post-project evaluation process to determine if it is

sufficient to accomplish evaluation objectives, to identify areas of non-compliance or low

quality evaluations, and to identify shortcomings in the design of evaluation forms. The

objective of the assessment was to recommend ways to correct any deficiencies and turn

project evaluations into lessons learned for broader dissemination in the organization.

Delivered. APEC TATF brought in its expert on evaluation processes, Dr. Mark Bardini, for a

week-long visit to the APEC Secretariat in September. During his visit, Dr. Bardini examined

the evaluation process, including processes for monitoring implementation and post-project

evaluation; examined related issues, such as assessment of multi-year projects—something

critical now that APEC has approved a policy of promoting more long-term, strategic

projects; and explored steps to enhance performance of project overseers. Dr. Bardini

reviewed a range of project documents (including evaluation reports, project proposals, APEC

Project Guidebook), visited the APEC Secretariat Office in Singapore to interview key staff

and stakeholders (including current and former POs and PDs) to gain an internal and external

perspective on the monitoring and evaluation process, and documented findings and

recommendations in a report submitted in September and to be provided to the APEC Budget

and Management Committee at its meeting scheduled for October 2-3 in Singapore.

Next Steps. Review Dr. Bardini’s full report and consult with RDMA and State EAP/EP on

how best to present the report to APEC for consideration and approval. APEC TATF will be

prepared to assist with implementation as approved during its third work plan period.

LINKAGES BETWEEN APEC SECRETARIAT AND MEMBER ECONOMIES ACTIVITY STREAM

Development of “APEC Focal Points” in Member Economies In its second semi-annual work plan, APEC TATF committed to assessing the potential

benefits of and steps necessary to develop “APEC Focal Points” in each APEC member

economy. Most, if not all, member economies already have staff responsible for APEC issues,

so the issue is how might APEC capitalize on this fact to establish a formally organized cadre

of officers in APEC member economies who have the know-how and capability to better

develop and coordinate APEC programs.

Delivered. In September, APEC TATF contracted with an expert, Professor Richard Feinberg,

to assess the potential benefits of having a formal APEC Focal Point in member economies.

Professor Feinberg interviewed a broad range of staff in the APEC Secretariat and in the

APEC offices of developed and developing APEC member economies. APEC TATF

anticipates receiving Professor Feinberg’s full report on APEC Focal Points in October.

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Next Steps. Review Professor Feinberg’s full report and consult with RDMA and State

EAP/EP on how best to present the report to APEC for consideration and approval. APEC

TATF will be prepared to assist with implementation as approved during its third work plan

period.

APEC INSTITUTIONAL SUPPORT ACTIVITY STREAM

Performance Appraisal Process for Professional Staff Members The APEC TATF proposed to assist the APEC Secretariat in developing a performance

appraisal system for seconded PDs who did not have an appraisal system tailored to their

position description. Development and implementation of such a system was included as part

of the duties of the incoming fixed-term Executive Director. APEC TATF included this

activity at the direct request of APEC Executive Director Tay. The TATF proposed to

collaborate with PDs and the ED to design an appraisal system that builds on existing job

descriptions and tailors the performance appraisal system to the specific and unique needs of

PDs in a fair and objective manner. In addition, the Secretariat requested that APEC TATF

examine the performance appraisal form/system for APEC support staff and, if needed,

recommend improvements.

Delivered. APEC TATF expert Dr. Beryl York visited the APEC Secretariat for one week in

July for a fact-finding mission. Dr. York conducted a collaborative work session with PDs,

PEs, and APEC senior managers to understand the current thinking at APEC related to the

performance appraisal process, to identify evaluation criteria, and to solicit input from PDs.

On this basis of her review of background material and this work session, Dr. York developed

performance feedback forms, guidelines, and a policy guidebook based on PD job

descriptions and observations on how work was actually done in the Secretariat. In late

September, Dr. York returned to the APEC Secretariat to formally present recommendations

on the new appraisal system to Secretariat leadership and staff. ED Tay and newly arrived

Chief Operating Officer Sim Cher Young endorsed Dr. York’s findings. Dr. York prepared a

presentation on her recommendations to be delivered by her to the APEC Budget and

Management Committee meeting scheduled to take place October 2–3 in Singapore.

Next Steps. Present findings for information to BMC. Work with current APEC Secretariat

leadership on a plan of action to implement Dr. York’s recommended policy on seconded PD

assessment and feedback. Be prepared to brief incoming FTED Ambassador Noor on his

arrival at APEC and seek his concurrence to implement Dr. York’s recommended policy on

seconded PD assessment and feedback. APEC TATF will be prepared as approved by RDMA

and State EAP/EP to include implementation assistance for this policy in its third work plan.

Facilitate Coordination and Understanding Between APEC and ASEAN To enhance ties and cooperation between the APEC and ASEAN Secretariats, the TATF

proposed to promote more robust dialogue between the two Secretariats by supporting a short

visit (e.g., two days/one night) to the ASEAN Secretariat by select APEC officials to discuss

and propose areas of cooperation. APEC TATF also proposed to develop a matrix of ongoing

work in areas where there is overlap in APEC and ASEAN equities and programs. The matrix

would be the basis for facilitating an exchange of information to inform APEC and ASEAN

W O R K F O R T H E S E C R E T A R I A T 1 5

stakeholders of the areas of overlap. Initially the matrix would identify targeted areas where

there is a desire to foster cooperation (e.g., trade facilitation).

Delivered. Ambassador Michael Tay was scheduled to visit the ASEAN Secretariat in Jakarta

on June 11-12, 2009 to meet with ASEAN Secretary General Pitsuwan and Deputy Director

General Pushpanathan. To capitalize on this visit to the ASEAN Secretariat, APEC TATF

facilitated a delegation of six APEC Secretariat staff to accompany Ambassador Tay. The

visit introduced select APEC officials to their counterparts in ASEAN to establish and

promote working relationships for collaboration between the two Secretariats and discuss

substantive areas, including strategic planning, public outreach, cross-sectoral cooperation,

small and medium size enterprises, disaster management, supply chain connectivity, standards

and conformance, and health issues. The two sides agreed to seek specific areas for follow up.

Next Steps. APEC TATF is developing a matrix of work in areas where there is overlap in

APEC and ASEAN programs and priorities. APEC TATF is also working with colleagues in

the ASEAN TATF to facilitate two video conferences for APEC and ASEAN Secretariat staff

who have expressed an interest in exchanging ideas and information. The two conferences

will concern public affairs and structural reform.

Building Stronger Links between APEC and the Private Sector, including Business and Civil Society This activity includes two distinct tasks: (1) recommend ways to enhance ties and improve

coordination between the APEC and ABAC Secretariats, and (2) analyze how APEC can

build an inclusive framework for reaching a broader array of stakeholders, including business

representatives not normally involved in the ABAC process, civil society, NGOs, nonprofits,

academia, governments, legislators, and other international organizations.

Delivered. In August, APEC TATF engaged Professor Vinod Aggarwal of the UC Berkeley

APEC Study Center to undertake these tasks. Professor Aggarwal spoke with a broad range of

staff at the APEC and ABAC Secretariats and key stakeholders in the broader APEC

community as part of a fact-finding exercise. The resultant study will serve as a basis for

recommendations to APEC for improving ties between the APEC and ABAC Secretariats and

for building a broader constituency.

Next Steps. Review Professor Aggarwal’s full report and consult with RDMA and State

EAP/EP on how best to present the report to APEC for consideration and approval. APEC

TATF will be prepared to assist with implementation as approved during its third work plan

period.

4. Work on Three APEC Pillars

The APEC TATF is designed to enhance regional economic integration and cooperation

within the APEC region by more efficiently and effectively delivering and providing capacity

building assistance and assisting APEC economies and the APEC Secretariat to carry out their

work under the Three Pillars.

Table 4-1

Delivered Work Aimed at APEC’s Three Pillars as of October 22, 2009

Delivered

APEC Project Proposal on Corporate Governance

APEC Project Proposal on Improving Public Consultation in the Rulemaking Process

Four economy level case studies in support of the APEC Workshop on Improving Public Consultation in the Rulemaking Process

(Indonesia, Mexico, United States, and Vietnam)

APEC Environmental Goods and Services Information Exchange Tool Phases I and II

APEC Workshops on Best Practices in Micro-Finance and Micro-Credit

Half day workshop on Micro-credit and Women Entrepreneurs

One-day seminar on the Commercial Realities of Cross-border Services Trade

One-day seminar on Regulatory Issues in Cross-border Services Trade: Ensuring Protection of Consumers and Service Suppliers

APEC Project Proposal on Low Level Presence of Products of Agricultural Biotechnology in Agricultural Shipments: Towards an

Alignment of APEC Member Economy Policies

APEC Project Proposal for a 2-day Workshop on Reducing Start-up and Establishment Time of Businesses

APEC project proposal on Capacity Building for Dispute Prevention and Preparedness

APEC Project Proposal to Provide Technical Assistance and Training to APEC Developing Member Economies on the Data Privacy

Pathfinder

Funded the participation by U.S. expert Henry Schiffman in a workshop on corporate governance sponsored by Vietnam that was held

July 2 – 3 in Hanoi

TRADE AND INVESTMENT LIBERALIZATION

APEC Environmental Goods and Services Information Exchange Tool At APEC’s 2008 Environmental Goods and Services (EGS) Workshop, APEC member

economies agreed to hold a brainstorming session on the establishment of an information

exchange tool on goods and services related to the environment, clean energy, and climate

change-mitigation strategies. A “living,” online environmental goods and services

information exchange (EGSIE) would allow public and private stakeholders to access and

share the latest information, studies, projects, etc., on EGS and voluntarily exchange

information on specific environmental goods and services. To encourage brainstorming,

1 8 A P E C T A T F A N N U A L R E P O R T , 2 0 0 8 – 2 0 0 9

TATF proposed to develop a prototype to give members an idea of the look and feel of an

online exchange tool. APEC TATF undertook this activity in three phases.

Delivered

• Phase I developed a mock-up version of the EGSIE tool, which was presented to the

Market Access Group (MAG) meeting in May 2009.

• Phase II incorporated comments from the MAG meeting and eliminated technical

glitches.

Next Steps. APEC TATF is implementing Phase III, during which the tool will be populated

with information submitted by APEC member economies and the system migrated to an

APEC server with APEC ownership. The tool should be ready to launch by November 2009

in time for APEC Economic Leaders Meeting.

Biotech After consultation with State EAP/EP, biotech work proposed in the APEC TATF first work

plan was modified to take into account feedback from the U.S. delegation to APEC’s High

Level Policy Dialogue on Agricultural Biotechnology (HLPDAB), which had already

developed a vigorous work plan. This included a May 2009 workshop to “Promote Agreed

APEC Approach on Low-Level Presence of Biotech Events to Enhance Food Security in the

Region.” In close coordination with USDA and EAP/EP, TATF proposed in its draft second

work plan to support work to reach agreement on the establishment of clear rules in APEC

governing the “low-level presence” of a yet-to-be approved biotechnology event in

agricultural goods as a way of introducing greater certainty to trade in agricultural goods and

thereby advancing the objectives of APEC’s Food Security Work Plan. Following the

conclusion of the 2009 May workshop, the TATF worked with the U.S. HLPDAB delegation

to develop a follow-up workshop (for early 2010) on low-level presence. As low-level

presence is only an issue when there are unsynchronized biotech approvals, EAP/EP has

recommended that TATF develop a project focusing on regulatory effectiveness and

efficiency of APEC economies biotech systems.

Delivered

• Support as requested and needed to the U.S. delegation to the APEC HLPDAB for its

2009 May workshop to “Promote Agreed APEC Approach on Low-Level Presence of

Biotech Events in Agricultural Trade to Enhance Food Security in the APEC Region.”

• Drafted and submitted an APEC project proposal on “Low Level Presence of Products of

Agricultural Biotechnology in Agricultural Shipments: Towards an Alignment of APEC

Member Economy Policies” to APEC co-funding.

Next Steps. Although a great deal of work went into drafting and revising the project

proposal, it was not recommended for approval during funding session 3. APEC TATF will

review committee feedback and address any issues in order to revise and resubmit the

proposal for the first funding session in February 2010.

T H R E E A P E C P I L L A R S 1 9

BUSINESS FACILITATION

Enhancing Efficiency of APEC’s Biotechnology Regulatory Systems Six of the 21 countries in the world that grow transgenic crops are APEC member economies.

These six account for more than 60 million hectares of the 90 million planted with transgenic

seed in 2005. In addition, all 21 APEC economies are engaged in some form of agricultural

biotechnology research and development. This means that many more APEC farmers may

soon join the more than 8.5 million farmers worldwide who have chosen to plant transgenic

crops, having recognized the value these seeds have i increasing yields, reducing

pesticide/herbicide use, and enabling the use of no-till agricultural methods. However,

inconsistent and inefficient regulatory systems governing biotechnology in APEC member

economies threaten potentially vibrant growth in the biotech sector. The TATF will consult

with the U.S. delegation to the HLPDAB, and/or other relevant experts for guidance on

programs that would advance the harmonization of regulatory systems pertaining to

biotechnology (e.g., approval of biotech products) in APEC member economies.

Next Steps. After consulting with key U.S. Government counterparts, APEC TATF will

support the design of a project that will promote innovation in APEC’s biotech sector.

Micro-credit Initiatives in APEC Region Focusing on Support for Women-owned Businesses in Developing Economies Obtaining the resources necessary to start a business is a challenge in any economy, but

especially for female entrepreneurs in developing economies and the current financial and

economic crisis has heightened these challenges. The TATF proposed to sponsor a workshop

to explain to APEC officials and representatives of NGOs and entrepreneurial groups (with a

focus on developing economies and women entrepreneurs) programs and best practices for

micro-credit facilities as one way of enhancing access to capital for women and entrepreneurs.

This project is envisioned to be multi-year and strategic in its approach. The best practices, case

studies, resources, recommendations and/or strategies developed from the August workshop

will inform development of a second workshop, and clarify topics to be addressed at a

microfinance workshop the U.S. Government plans to propose for 2010. All of this work and

network of contacts and resources identified will be leveraged to develop the program for the

Private Sector Development Agenda/Ease of Doing Business Women Entrepreneurs Seminar to

be scheduled on the margins of the APEC SME Ministerial and related meetings to be held in

2011 in the United States. This activity is proposed to take in (1) a half-day seminar in early

August; and (2) a two-day workshop in December.

Delivered

• Drafted and submitted an APEC project proposal on APEC workshops on best practices

in micro-finance and micro-credit, which was approved for co-funding in July 2009.

• A half-day workshop on micro-credit and women entrepreneurs was held on August 6 on

the margins of the APEC Women Leaders Network. The workshop attracted an audience

of 44 confirmed attendees, who represented a broad range of APEC member economies.

Speakers included representatives from civil society, including Quantum Leaps based in

Washington DC, Women’s World Banking from New York, and Capital Sisters

2 0 A P E C T A T F A N N U A L R E P O R T , 2 0 0 8 – 2 0 0 9

International from Golden, Colorado. The workshop concluded with endorsement of best

practices for micro-credit in the APEC region. These practices were acknowledged by the

APEC Gender Focal Point Network, which agreed to include them in APEC’s official

records.

Next Steps. APEC TATF is preparing for the follow-on policy workshop aimed at APEC

member economy officials that will build off the WLN policy development workshop to

promote microcredit best practices for small businesses in the region. This two-day workshop is

scheduled to take place in Jakarta, Indonesia in early December 2009. APEC TATF is

confirming workshop dates.

Seminars on Cross-border Services The United States, with co-sponsors Australia, Chinese Taipei, Japan, and New Zealand,

submitted an APEC project proposal that seeks to increase knowledge and understanding

among APEC member economies of commercial realities, opportunities, and impediments

relating to cross-border services trade. The sponsors proposed two seminars to coincide with

the second and third APEC Group on Services (GOS) meetings in 2009, bringing together

services trade negotiators and policymakers, experts from international organizations and

academia, the private sector, and regulatory officials to discuss issues that affect and are

affected by cross-border services trade.

The TATF supported organization of the two seminars. The first concentrated on the

commercial realities and included discussions of the nature of services being traded across

borders, trends in cross-border services, opportunities for growth, and impediments to growth

from the perspectives of service suppliers and trade officials. The second seminar focused on

approaches to addressing regulatory issues raised by cross-border services trade, such as

quality assurance, consumer protection, and data privacy.

Delivered

• A one-day seminar on the “Commercial Realities of Cross-border Services Trade” was

held on the margins of CTI 2 and GOS 2 meetings on May 20. The APEC TATF assisted

with workshop implementation, including logistics and administrative matters related to

speakers. The workshop hosted speakers from international organizations, think tanks,

private sector, and government representatives and was attended by 67 APEC member

officials. Audience feedback was positive, citing the diversity in speakers as important to

providing different perspectives.

• A one-day seminar on “Regulatory Issues in Cross-border Services Trade: Ensuring

Protection of Consumers and Service Suppliers” took place on July 27 in Singapore in the

margins of the APEC GOS 3 meeting. The TATF helped identify expert speakers and

travel-eligible participants and managed workshop logistics (e.g., liaising with the

Singapore taskforce, coordinating travel arrangements, and handling payments and

reimbursements of expenses for U.S. funded experts and participants). The workshop was

attended by 70 representatives from all APEC member economies.

Next steps. Because of the success of the two seminars and the growing interest in trade in

services expressed in different APEC fora, it is likely that TATF, in collaboration with USTR

and EAP, will propose and develop a new project for 2010.

T H R E E A P E C P I L L A R S 2 1

Reduce Start-up and Establishment Time for Businesses APEC Leaders have continually recognized the business community as a key generator of

growth and employment in APEC economies. APEC Leaders have endorsed a private sector

development agenda that will “create an enabling environment for small businesses” and

supported a multi-year work plan for building capacity to support business development,

including reducing the start-up and establishment time of businesses.

Singapore, as the current APEC host, proposed to build on the private sector development

agenda by calling for the establishment of a broad framework or “Ease of Doing Business

Action Plan” to “improve the business environment and make it easier, faster, and cheaper to

do business.” The first part of the action plan has been completed, with Senior Officials at

SOM II recommending five areas as top priorities for focusing reform efforts: (1) starting a

business, (2) getting credit, (3) trading across borders, (4) enforcing contracts, and (5) dealing

with permits. These priorities were based on results from the ABAC Survey on Priority

Regulatory Impediments, the World Bank Study on EoDB in APEC, and the EC Prioritization

of Regulatory Reform for Improving the Business Environment (PRIBE) survey on reform

priorities of member economies.

At SOMII, Senior Officials also called on APEC member economies to volunteer to

“champion” a priority area and design a capacity-building work program to improve APEC

member economies’ performance in these areas, including the performance of women

entrepreneurs. As indicated in the discussion paper, Improving the Business Environment in

APEC, the United States has signaled its firm interest in developing an APEC capacity-

building work program that addresses starting a business. APEC TATF will work closely with

the U.S. Government to design and implement a two-day workshop to take place at SOMI in

2010.

Delivered. A project proposal to secure APEC co-funding for a two-day workshop on

reducing start-up and establishment time of businesses was submitted for consideration during

the third funding session in September 2009.

Next Steps. Upon approval by BMC in October, APEC TATF will work with USTR and

EAP/EP as well as the proposal co-sponsors to develop the agenda, identify the speakers,

send out the invitation, and manage workshop logistics related to the venue and travel-eligible

participants.

Investment Capacity-building Activity To contribute to implementation of the IFAP and build on the success of its 2008 workshops

(attended by more than 100 APEC-economy officials), the APEC TATF will support the

U.S.-sponsored investment capacity-building project. The purpose of this project is to improve

the capacity of APEC member economies to design and implement internal procedures and

mechanisms for the prevention and, where necessary, effective resolution of investor-State

disputes. In doing so, the project would enhance the ability of APEC economies to manage and

abide by their obligations under international investment agreements.

The project would be implemented through a five-day workshop to be held in the United States

in early 2009. The workshop would largely employ a case-study approach, drawing on the

experience of economies that have established mechanisms to manage investor concerns, and

prevent and/or resolve investment disputes. In addition to officials from these economies, the

2 2 A P E C T A T F A N N U A L R E P O R T , 2 0 0 8 – 2 0 0 9

workshop will draw on the research and expertise of academics and practitioners in international

investment law and of specialists from the United Nations Conference on Trade and

Development (UNCTAD). The TATF would support the planning and implementation of the

week-long program.

Delivered. APEC TATF worked closely with USTR to draft an APEC project proposal

CTI42/2009T/IEG Capacity Building for Dispute Prevention and Preparedness for a third

round of funding in September 2009. While USTR drafted the majority of the substantive

parts of the proposal, APEC TATF contributed to the section on methodology and put

together the proposal co-funding budget.

Next Steps. Once BMC endorsement is received, APEC TATF will work closely with its

USTR counterpart and UNCTAD to organize the workshop, including the development of the

agenda, confirmation of the date, invitations to APEC member economies, and coordination

of speaker and travel-eligible participant logistics.

ECONOMIC AND TECHNICAL COOPERATION

Seminar on Industry IPR Protection Measures IP-intensive industries invest significantly in measures to protect IPR (e.g., technical

protection measures in digital products and holograms and specialized printing techniques for

consumer goods). IP enforcement officials would benefit from greater awareness of these

measures, and officials and industry representatives would both benefit from a better

understanding of opportunities for—and obstacles to—integrating measures into APEC

member economies’ IPR regimes to allow them to contribute more to the fight against piracy.

To address this gap in knowledge and understanding, the TATF has proposed to organize a

seminar on protection measures and on how IPR protection and enforcement regimes in the

APEC region facilitate or hinder the use and effectiveness of these measures.

Delivered. The TATF circulated a full draft APEC project proposal to stimulate thinking

among U.S. agencies responsible for IPR on subjects for a seminar on industry IPR protection

measures. Initial reactions from IP policy leads in the U.S. State Department, USTR, and

USPTO have been positive and they have agreed to work with TATF to determine optimal

timing for submitting the proposal for APEC co-funding.

Next Steps. Work with the U.S. Government IP experts to finalize the APEC project proposal

and agree on timing for submission. Previously, the group consensus was to delay submitting

the APEC project proposal on IP activity until 2010.

APEC Economic Policy Report on Corporate Governance The APEC Economic Policy Report (AEPR) is an annual report. The Economic Committee

(EC) takes the lead in developing the report and the Secretariat in publishing and

disseminating it. Each report focuses on one of the five themes from the Leaders’ Agenda to

Implement Structural Reform (LAISR): regulatory reform, competition policy, public sector

governance, corporate governance, and strengthening economic and legal infrastructure. The

report generally consists of three chapters. Chapter 1 is drafted by the economy leading the

work in the specific theme; Chapter 2 is drafted by the host economy; and Chapter 3 consists

of individual economy reports (IERs) from each APEC member. Themes covered so far

T H R E E A P E C P I L L A R S 2 3

include public sector governance (2007), competition policy (2008), and regulatory reform

(2009). The theme for the 2010 will be corporate governance, which is headed by the United

States.

Next Steps. APEC TATF will work closely with the Japanese and EAP/EP to outline content

for the U.S. chapter of the AEPR, and will identify a qualified expert to help draft the chapter.

Workshop and Follow-up Program to Promote Good Regulatory Practices for Chemicals In its second work plan the TATF committed to assisting the U.S. Environmental and

Protection Agency (EPA) with a workshop on good regulatory practices in the chemicals

sector planned for February 2010. The EPA requested TATF assistance in researching the

level to which APEC member economies are implementing international standards and

agreements related to chemicals as a key input for the workshop.

Next Steps. TATF has drafted technical instructions and identified an expert to conduct this

research in October 2009. TATF will submit the technical instructions to USAID RDMA for

review and approval.

Provide Technical Assistance and Training to APEC Developing Member Economies on Data Privacy Framework Pathfinder In 2007, APEC Ministers endorsed the APEC Data Privacy Pathfinder and want to gain

commitments from member economies to work together on developing a system that provides

for accountable cross-border data flows. The Pathfinder sets out a series of objectives that can

be achieved in this process. Currently, 16 economies are participating in the Pathfinder.

During SOM I Data Privacy Subgroup meetings, Indonesia indicated to the chair that it would

like to be the 17th economy but did not know where to begin and asked the chair for capacity-

building assistance. Indonesia, like several other APEC economies, requires technical

assistance in a number of areas in order to participate meaningfully in the Pathfinder process.

Chief among these is the development of a functioning accountability mechanism, whereby

participating industries in these economies can have their attestations of compliance with the

APEC Privacy Framework assessed by an independent, third-party “accountability agent.”

This activity is proposed to be carried out in two phases. The first will focus on helping

interested APEC economies identify which entity or entities could be an accountability agent.

On the basis of initial feedback, the TATF will work closely with the Data Privacy Subgroup

Chair and the Department of Commerce (DOC) to engage APEC representatives responsible

for data privacy policy in determining what assistance is needed. Indonesia, the Philippines,

and Vietnam have volunteered to participate in Phase I. TATF will also coordinate with

USAID, other donors, and the World Bank to avoid duplication of effort. In Phase II, APEC

TATF will organize a one-day seminar in the margins of SOMI in 2010 to present the

findings of Phase I and address data privacy capacity-building needs.

Delivered. Drafted and submitted an APEC project proposal to provide technical assistance

and training to APEC developing member economies on the Data Privacy Pathfinder to

APEC for consideration in the third co-funding session.

2 4 A P E C T A T F A N N U A L R E P O R T , 2 0 0 8 – 2 0 0 9

Next Steps. Phase I is being organized. A draft terms of reference has been circulated to the

DOC and to the potential expert consultant for input. Once there is consensus on the Phase I

approach and deliverables, APEC TATF will launch Phase I in Indonesia, the Philippines, and

Vietnam. Upon BMC approval of the project proposal, APEC TATF will work with its

counterparts to implement Phase II, the Data Privacy Workshop, which is scheduled for

February 2010.

Energy Star Program for APEC This task was originally aimed at developing an energy star program for APEC. But after long

internal discussion, it was decided that development should focus on a general program for

promoting energy efficiency, with one component devoted to energy star issues. The TATF

will coordinate with U.S. co-leads in DOE and EPA and TATF stakeholders to develop

activities and/or a work program to promote the energy star model in APEC. TATF

anticipates that this could include an APEC-wide survey of best practices in energy efficiency

and policies for consumer and commercial products and buildings.

Next Steps. Once work areas have been agreed on, the TATF will draft a concept paper as

needed and a project proposal for APEC co-funding.

Promoting 21st Century Skills in Education through International Comparison/Benchmarking of Education Systems The Fourth APEC Education Ministerial Joint Statement issued in June 2008 acknowledged

that quality education for all is a common goal and declared the meeting theme to be "Quality

Education for All: Achieving Competencies and Skills for the 21st Century.” Priority areas

include math and science, language, career and technical education, and ICT and systemic

reform. Ministers acknowledged the value of international benchmarking in encouraging

APEC research institutions to support APEC education efforts and the importance of

elevating APEC and EDNET “as a world laboratory for new ideas in which Ministers can:

• Analyze internal performance and practices from the broader perspective of other

economies.

• Benchmark practices against those of the highest performers.”

The TATF will work with the Department of Education to seek out U.S. Government

agencies and other APEC economy interlocutors to develop program options for advancing

objectives for to 21st century skills through international benchmarking. TATF met with the

Department of Education lead on benchmarking and he described the program they are

preparing to undertake in the APEC region.

Next Steps. APEC TATF will work with the Department of Education to finalize the

methodology of the project and to identify experts to undertake the work.

Improving Public Consultation in the Rulemaking Process Public consultation in the rulemaking process (i.e., how governments create or promulgate

regulations) is vital to APEC’s core function of facilitating trade and investment in the Asia-

Pacific region. The 2007 World Bank study, “Transparency and Trade Facilitation in the Asia

Pacific: What's at Stake?” indicated that improved transparency alone could boost APEC’s

T H R E E A P E C P I L L A R S 2 5

intraregional trade by US$148 billion. Public consultation is one very important method for

improving regulatory transparency, efficiency, and effectiveness because it facilitates

interaction between policymakers, regulatory agencies, and interested members of the public.

Public consultation can build the domestic ownership necessary for reform sustainability and

enforceability.

Given that greater transparency and private sector involvement in APEC issues is a

continuous theme of many APEC committee and sub-fora meetings, the APEC TATF will

work closely with U.S. Government counterparts to develop an APEC-centric workshop on

how economies incorporate public consultation into rulemaking (as it relates to regulatory and

structural reform). At the workshop, member economies will learn, inter alia, how

consultation improves transparency and builds reform ownership; about various approaches to

public consultation through case studies of Indonesia, Mexico, the United States, and Viet

Nam; about best practices and lessons learned; and about the benefits and challenges that all

member economies encounter when implementing mechanisms for public consultation.

Delivered

• Drafted and submitted an APEC project proposal on improving public consultation in the

rulemaking process for APEC co-funding during the first session. It was not approved

during that funding round. The proposal was revised and resubmitted for the second

funding session, and was approved in July.

• Four case studies on how Indonesia, Mexico, the United States, and Vietnam incorporate

public consultation mechanisms into their rulemaking processes. These case studies will

be key inputs for a two-day workshop the TATF will carry out October 29-30 in Jakarta.

Next Steps. TATF is identifying speakers and experts for October workshop on promoting

public participation in rulemaking.

Workshop on Corporate Governance During the first work plan period, the TATF coordinated with officials in the U.S. delegation

and with ABAC to develop concepts and plans for a workshop on OECD guidelines on

corporate governance in an Asia-Pacific context as directed by Trade Ministers in their

November 2008 declaration. Steps to advance this activity included development of a concept

paper and a formal APEC project proposal for use at the SOM I and related meetings held

February 13–26 in Singapore. As a result, the U.S. delegation was able to obtain co-

sponsorship of the proposal and to submit the APEC project proposal to the APEC Secretariat

by the deadline of March 20 for it to be considered for APEC co-funding. The workshop will

be held sometime this fall pending further consultations with the business community.

Delivered. Drafted and submitted an APEC project proposal on implementing the OECD

principles of corporate governance for APEC co-funding during the first funding session for

2009. The project was approved in May 2009.

Next Steps. The TATF is organizing a workshop scheduled for November 11, 2009, in

Singapore. The workshop will take place in the margins of the CEO Summit and CSOM

related meetings. A draft agenda and invitation has been circulated to the appropriate APEC

member economies, and APEC TATF has received a number of nominations.

2 6 A P E C T A T F A N N U A L R E P O R T , 2 0 0 8 – 2 0 0 9

CAPACITY BUILDING AND TECHNICAL ASSISTANCE TO APEC DEVELOPING MEMBER ECONOMIES

Viet Nam Training on Corporate Governance Vietnam submitted an APEC project proposal to design and deliver a two-day training

program on corporate governance. During SOM I, Vietnamese officials reached out to the

U.S. Government for guidance on preparing and implementing the training scheduled for July

2009 in Hanoi. Vietnam requested that the TATF provide technical guidance to Vietnam’s

Project Overseer in course development and organization.

Delivered. The APEC TATF sponsored the participation of U.S. expert Henry Schiffman in

the workshop on corporate governance held in Hanoi on July 2–3. Mr. Schiffman delivered

the opening presentation and participated in three of four main sessions. The workshop

explained the elements of good corporate governance and described steps that APEC

economy officials could take to establish regimes for promoting good governance. During

closing remarks, Vietnam’s Vice Minister of Industry and Trade, Nguyen Cam Tu, expressed

his appreciation to USAID and the U.S. State Department for their assistance in sponsoring

Mr. Schiffman’s participation. The workshop was attended by about 50 officials from APEC

member economies.

5. Performance Monitoring

Plan

The PMP process has three phases: design, identification of data and sources, and

implementation. Phase I, begun in mid-March, included developing the plan framework and

format and incorporating basic measurement indicators that comply with USAID’s

Automated Directives System (ADS) and Foreign Assistance Framework (F-Framework).

Phase II consisted of a literature review and online research of indicators that could be used in

the plan, including data sources, baseline values, and collection methodology consistent with

U.S Government methodology. This phase was carried out by Ms. Pooja Pokhrel during a

short-term assignment. She consulted with the APEC TATF COP and DCOP to draft a plan,

which is being reviewed by USAID RDM/A. Phase III will be an ongoing exercise

throughout the life of the TATF.

Delivered. A draft PMP.

Next Steps. Once comments are received from USAID RDMA, APEC TATF will finalize the

PMP and submit it for final approval. TATF has already begun to use the indicators identified

in the PMP for its results reporting purposes, and will continue to collect data on its activities

throughout the life of the project.

Appendix A. Activity Status

Matrix

Table A-1

Status of Activities as of September 30, 2009 (Completed and Ongoing)

Activities Status

USAID

Approved

APEC

Approved

W O R K A I M E D A T S E C R E T A R I A T

Project Management Unit systems and

procedures for travel logistics

In progress/completed FAQs

approved

NR

New Project Database To be implemented No NR

Building capacity to improve quality of project

proposals (training to APEC Secretariat Staff)

Completed Yes NR

Development of DVC capability Completed Yes NR

IT Assessment Completed Yes NR

Digitalization of APEC Project Guidebook To be implemented No NR

Post-Project Evaluation Assessment/Workshop Completed/to be

implemented

Yes NR

Development of APEC Focal Point In progress Yes NR

Associate Officers Program Delayed/withdrawn No NR

Performance Appraisal System Completed Yes NR

APEC-ASEAN Coordination Matrix To be implemented No NR

Stronger Links between APEC and private

sector concept paper

In progress Yes NR

W O R K U N D E R A P E C ’ S T H R E E P I L L A R S

TRADE AND LIBERALIZATION

APEC EGSIE Development In progress Yes NR

APEC Tariff Database Withdrawn

BUSINESS FACILITATION

Assess member economies’ regimes governing

biotechnology

Delayed No NR

Micro-credit initiatives workshops I and II Completed/to be

implemented

Yes Yes

Cross-border Services Seminars Completed Yes Yes

Business Start-up To be implemented No P

Investment Capacity To be implemented No P

ECONOMIC AND TECHNICAL COOPERATION (ECOTECH)

IPR Protection Measures To be implemented No

Regulatory Practices for Chemicals Workshop In progress No

A - 2 A P P E N D I X A

Activities Status

USAID

Approved

APEC

Approved

Data Privacy Framework Pathfinder In progress No P

Energy Star Program for APEC To be implemented No

21st Century Skills in career and technical

education

To be implemented No Self- funded

Improving public consultation in rule making

process

In progress Yes Yes

Workshop on corporate governance In progress Yes Yes

O T H E R W O R K R E Q U I R E D I N T H E T A T F T A S K O R D E R

Performance Monitoring Plan Phase I & II completed.

Phase III to be

implemented.

Yes NR

NR—Not required

P—Pending

Appendix B. Indicator Targets

and Results

FY09 was APEC TATF’s first year of operation. As such, there are no FY09 targets to

measure the FY09 totals against.

Table B-1

APEC TATF Indicators FY 09 Totals and FY10 and FY11 Targets

FY 2008

Program Area F-approved Standard Indicator

FY09

Totals

FY10

Targetb

FY11

Targetb

Number of USG supported training events

on topics related to improving trade and

investment environment

4 8 8

Number of participants in USG supported

trade and investment environment trainings

159 350 350

Trade and Investment

Number of trade and investment

environment diagnostics conducted

4 6 6

Infrastructure (Energy) Number of people receiving USG

supported training in energy related policy

and regulatory practices

0 50 50

Economic Opportunity Number of participants in USG-supported

events on topics related to micro-credit

initiatives*

44 50 100

Environment Number of APEC TATF activities related

to improving environmental policy or

practice within APEC economiesa

0 2 3

Transnational Crime Number of people in host country trained

on intellectual property theft and/or cyber

security

0 40 40

Education (Basic) Number of APEC member economy

officials trained

0 100 100

Private Sector

Competitiveness

Number of the 11 core commercial laws

analyzed as a result of USG assistance

0 3 3

A This is not a standard F-approved indicator, but has been tailored to fit TATF activities in the particular program area.

b FY10 and FY11 targets will be determined by subsequent APEC TATF work plans. These are estimates only.

Appendix C. Short-term

Consultancies

In the first year of the TATF implementation, 16 short-term consultancy assignments were

undertaken, as listed below.

Table C-1

Short-term Technical Assistance Consultancies/Funded Speakers (Through September 2009)

Name Task Date LOE

Pooja Pokhrel Implementation of Phase I of the PMP and

assistance with TATF project management

February–March 2009 26

Grant Ferrier & Bo Isenglaas Development EGSIE Tool April–July 2009 40

Lee Tuthill Speaker for the “Commercial Realities of Cross-

Border Service Trade” Seminary

May 2009 N/A

Gillian Virata Speaker for the “Commercial Realities of Cross-

Border Service Trade” Seminary

May 2009 N/A

Henry Schiffman Training Course on Corporate Governance June–July 2009 8

Nimesh Modak APEC project proposal development June–July 2009 21

Beryl York APEC Performance Appraisal System June–September 2009 26

Dave Andrews Speaker for the “Commercial Realities of Cross-

Border Service Trade” Seminary

July 2009 N/A

Lief Doerring Training for APEC on improving project quality July–October2009 18

Richard Self U.S. Case Study on Public Consultation in Rule

Making Process

August–September

2009

12

John Davis Indonesia Case Study on Public Consultation in

Rule Making Process

August–September

2009

12

John Bentley, Pham Cam Tu,

Quang Vinh Pham

Vietnam Case Study on Public Consultation in

Rule Making Process

August–September

2009

12

Jacobs and Associates Indonesia Case Study on Public Consultation in

Rule Making Process

August–September

2009

Purchase

Order

Mark Bardini Assessment of APEC’s Post-Project Evaluation

Process

August–October 2009 25

Fulvio Carbonaro APEC Secretariat IT System Assessment September–October

2009

15

Vinod Aggrawal Building stronger links with APEC and Private

Sector

September–October

2009

15

Richard Feinberg APEC Focal Point Assessment September–October

2009

15